Collection of premium levy by the Insurance Authority
From 1 January 2018 onwards, a levy on insurance premiums for insurance policies will be payable to the Insurance Authority (IA) by policyholders in accordance with the Insurance (Levy) Regulation and the Insurance (Levy) Order under the Insurance Ordinance (Cap.41).
Policyholders of all new or in-force insurance policies must pay the levy along with their premium payment. The IA will collect the levy from policyholders via insurance companies.
The levy rate will start at 0.04% of the insurance premium per policy year and increase gradually to 0.1%. The amount of the levy imposed on each policy will be subject to a cap. Details of levy rate and cap are set out in the table below.
| Phase 1 | Phase 2 | Phase 3 | Phase 4 | |
|---|---|---|---|---|
| 1 January 2018 to 31 March 2019 | 1 April 2019 to 31 March 2020 | 1 April 2020 to 31 March 2021 | 1 April 2021 onwards | |
| Levy rate | 0.04% | 0.06% | 0.085% | 0.1% |
| Levy cap (Life insurance) |
HK$ 40 | HK$ 60 | HK$ 85 | HK$ 100 |
Policyholders are required to pay the levy in accordance with the law. If a policyholder does not pay the levy as required, the IA may impose on the policyholder a penalty of up to HK$5,000, and may recover the outstanding levy as a civil debt due to the IA. However, Friends Provident International Limited has chosen to pay the levy on the insurance policies on behalf of all our policyholders i.e. the levy of your policy will be borne by Friends Provident International Limited.
You can refer to dedicated IA webpage: www.ia.org.hk/en/levy to find out more about the premium levy collection with illustrative examples and publicity materials, including a promotional leaflet and a short video by the IA.
Should you have any enquiries regarding premium levy, please do not hesitate in contacting us via our customer service hotline +852 3550 6188 at our office hours, Monday to Friday, 09.00-18.00 Hong Kong time or email us customerservicing@fpihk.com.